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due diligence: the successful approach Public records are notorious for data entry errors. Investigators must also be thorough and resourceful Compared to what is at stake, due diligence is a minor cost
DUE DILIGENCE... Successful investors don't gamble in the dark Presented by G2LLC.net: Free offer! There are wide differences in the way due diligence is performed. What you dont find out can hurt you.
Due diligence can be anything from checking a few references to a thorough background investigation of all parties or proposed ventures. The experience of the investigator is often an essential factor in the success or failure of the process. While anyone can obtain public records, being thorough and cross-referencing what records are obtained is critical. Public records are notorious for data entry errors. Misspellings Names, dates, social security numbers attributed to the wrong individuals Corporations attributed to the wrong individuals Default date entries when no specific day is available for a birth record Incomplete entries Obsolete entries Any or all of the above can completely confuse the non-professional, sending the investigation on a wild goose chase. This is especially true for those who rely on the spy-ware programs readily available on the Internet to perform due diligence. Context is critical. There are other issues with due diligence, which is why it is best left up to experienced professionals. Context is critical. Due diligence to determine if someone is suitable for an employment position should be done in the context of his or her resume. Due diligence to quantify a business opportunity should be done by the experienced business investigator to determine if the proposed venture and principals are legitimate and viable. Or not. Investigators must also be thorough and resourceful. They must know what information to get, how to obtain it discreetly if necessary and how much is enough. They must be aware of privacy laws: overzealous investigators can get you hit with a major lawsuit, even criminal charges. Compared to what is at stake, due diligence is a minor cost. The most popular objection to due diligence is the expense involved. Properly conducted, due diligence can be time-consuming and can seem expensive. But compared to what is at stake, the cost is less than the potential loss. If your safety, your freedom, or your entire business hangs in the balance, should the expenditure of a few hundred or even a few thousand dollars stop you? Thorough, professional due diligence: you get what you pay for. ©Copyright 2003, G2LLC.net Asset recovery Investigating fraud Recognizing investment fraud Investment fraud prevention 10 Commandments of investment contracts
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